Corporate Fraud Law Pittsburgh, PA
Many incentives exist for corporate fraud. Some accountants, eager to justify large fees, have in the past helped companies “cook the books” at the expense of shareholders. When serious problems occur, it is often the “little guy” who suffers the most. Many employees have counted on their company’s stock held in their retirement funds to insure their financial stability in retirement. Witness the debacle of scandals like Enron. In many of these cases corrupt accounting practices are at the root of the problem.
In recent years government regulation has been beefed up to help prevent corporate fraud. However, with the sub-prime mortgage disaster, the instances of corporate fraud may well escalate. Dealings like insider trading, deceptive sales practices, illegal schemes by hedge fund managers, investment banks and equity companies will continue.
The government realizes that there is a need to provide more agents to investigate mortgage fraud cases, such as the recent Pennsylvania case where a mortgage broker was pocketing homeowners’ mortgage payments. There is also a need to police the field of reverse mortgages, which are advertised primarily for the elderly.
It is important for the public not to become lulled into complacency by the recent corporate investigations and prosecution of executives. Investors, above all, must be wary of buying shares of a company without a thorough investigation, and employees are well-advised not to place all of their retirement funds in one company’s stock, especially if it is the company that employs them.
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